ENERGY INVESTORS FUNDS CLOSES FINANCING FOR KLEEN ENERGY SYSTEMS, LLC
620MW Plant Being Constructed in Middletown, CT

NEW YORK  (June 26, 2008) Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the U.S. energy and electric power sector, announced that its United States Power Fund II, L.P. (“USPF II”) and its United States Power Fund III, L.P. (“USPF III”) has raised construction financing for the Kleen Energy Systems, LLC power plant in Middletown, CT. Construction of the project began in February 2008. The financing was a total of $985 million of senior secured bank loans and a revolving credit facility. EIF is the majority owner of the project, with the balance owned by the developer group, White Rock Holdings Associates, LLC.

Kleen Energy Systems will be a 620 MW combined cycle natural gas fired power plant that is currently under construction in Middletown, CT, approximately 15 miles south of Hartford. The project won a competitive RFP process run by the state of Connecticut and has entered into a 15-year capacity agreement with Connecticut Light and Power for the electricity produced by the plant. The project has also finalized a multi-year tolling agreement. The project is being built per the terms of a fixed-price, turnkey EPC contract by O&G Industries utilizing state-of-the-art Siemens gas and steam turbines and will feature a best-in-class emissions profile. The project will be operated by North American Energy Services and will be managed by Power Plant Management Services. Construction is scheduled to be completed in mid-2010.

We’re thrilled to have raised the financing to help construct this wonderful project, which we have backed since it was in its development stages,” said Herb Magid, a Managing Partner of EIF. “It’s a testament to the project, its backers and the nature of the power purchase agreements that we’ve been able to secure financing from such a solid group of institutions.”

Goldman, Sachs & Co. acted as joint lead arranger and sole bookrunner for senior secured loans raised to help finance the construction of the project. The bank loans were rated as investment grade (BBB-) by Fitch Ratings.

“With this construction financing in place, we’re able to build a first-class power plant to serve the people of Connecticut,” said William Corvo of Kleen Energy Systems. “This plant will provide clean, economical power to an area in need of new power generation.”

“We’re excited to be delivering new clean, efficient and cost-effective power to the state of Connecticut in response to their request for new power generation,” said Mark Voccola, Vice President of EIF. “This financing showcases the quality of the project and our development efforts to date.”

About Energy Investors Funds
EIF was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry.  Its consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation.  As investment managers, EIF seeks to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts.  EIF has mobilized over $3.4 billion in capital raised in seven funds, and currently manages four private equity funds from its offices in Boston, New York, and San Francisco.  These funds have made over 100 diversified investments with a combined underlying asset value exceeding $7 billion.  EIF controls 4,000 MW of operating power assets with another 2,200 MW of power assets under development or construction.  For more information visit www.eif.com.

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